$2.4 billion Deal Announced by Phillips 66 Partners

In a deal worth $2.4 billion, Phillips 66 Partners LP is buying Phillips 66’s 25 percent interest in two North Dakota pipelines.

The purchase includes interest in the Dakota Access LLC and Energy transfer Crude Oil Co. LLC and 100% interest in Merey Sweeny LP. It includes the Bakken Pipeline, a system more than 1,900 miles in length with a 520,000 barrel a day crude oil capacity.

Receipt stations are located in North Dakota to access the Bakken and Three Forks production. There is also a delivery and receipt point in Patoka, Illinois as well as delivery points in Nederland, Texas including the Philips 66 Beaumont terminal.

Merey Sweeny owns operations that process residue from heavy sour crude into liquid products and fuel-grade petroleum coke at Phillips 66’s 247,000 barrel a day Sweeny refinery in Old Ocean, Texas.

 

“This is the largest acquisition [Phillips 66 Partners] has made to date,” commented Greg Garland, Phillips 66 Partners chairman and chief executive officer. “The Bakken Pipeline complements our strategy to expand current systems that are integrated with Phillips 66 refineries and terminals, while [Merey Sweeny] provides another reliable source of cash flow generation to the portfolio.”

The deal should close in October as Phillips 66 Partners is funding the purchase through a combination of debt and proceeds from a private placement of equity units.